Egypt’s Central Bank removes caps on foreign currency deposits
by ChemOrbis Editorial Team - content@chemorbis.com
According to local media sources, Egypt’s Central Bank issued new regulations to fund acquisitions while the bank also decided to remove caps on deposits and withdrawals of foreign currencies for naturalized persons as of 8 March 2016.
Prior to the decision, the cap on deposits of foreign currencies at banks was $10,000 per day with a maximum of $50,000 a month, while the cap on withdrawals of foreign currencies was $10,000 per day, without a monthly limit.
The bank highlighted that they are aiming to ease individuals’ transactions within banks through this decision.
The Central Bank also took some steps regarding banks’ financing acquisitions of companies in the Egyptian market.
The new regulations on this topic oblige banks not to grant any funding exceeding 50% of the operation value to any company for the acquisition of another company. This excludes letters of credit issued by the bank for the company wishing to acquire another company listed on the stock market. However, funding should not exceed 2.5% of the bank’s loan portfolio.
Prior to the decision, the cap on deposits of foreign currencies at banks was $10,000 per day with a maximum of $50,000 a month, while the cap on withdrawals of foreign currencies was $10,000 per day, without a monthly limit.
The bank highlighted that they are aiming to ease individuals’ transactions within banks through this decision.
The Central Bank also took some steps regarding banks’ financing acquisitions of companies in the Egyptian market.
The new regulations on this topic oblige banks not to grant any funding exceeding 50% of the operation value to any company for the acquisition of another company. This excludes letters of credit issued by the bank for the company wishing to acquire another company listed on the stock market. However, funding should not exceed 2.5% of the bank’s loan portfolio.
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